PHILADELPHIA-Pennsylvania Real Estate Investment Trust ended 2004, the first full year of its integration of portfolios acquired from Crown American Realty Trust and Rouse Co., with a 100.9% increase in net operating income, a 119.5% jump in funds from operations, and a 66.1% rise in income from continuing operations. "In 2005, we move from integration to execution," said Ronald Rubin, chairman and CEO of the locally based retail REIT, during a conference call.
Plans call for obtaining new merchants, remodeling assets and adding to its already considerable redevelopment budget. Cherry Hill Mall in New Jersey and Plymouth Meeting Mall near here join the redevelopment roster at investments of $135 million and $200 million, respectively. Tightening management of its assets and "creating outstanding retail experiences" will also receive increased emphasis, Rubin said.
The latter, called the "CORE" initiative, contains a comprehensive set of mall standards. All PREIT properties will be evaluated against the standards three times a year. Revenue enhancing initiatives are also underway. Among them are expanded distribution of Pennsylvania lottery destinations at properties in this state, increased gift card programs and the addition of wireless access in common areas.
Meanwhile, as of Dec. 31, 2004, occupancy in the REIT's same-store portfolio was 89.7%, compared with 89.9% on that date in 2003, despite "some early year bankruptcies and our redevelopment activities," Rubin said. Sales per sf in same store mall properties reached $354, versus $347 per sf at the end of 2003. All of the company's enclosed malls averaged 90.7% occupancy at year-end 2004, compared with 90.8% the year before. And PREIT's power centers were 96.8% occupied at year-end 2004, up from 97.9% the previous year.
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